Baosteel expanding international steel market

On June 28, the first production line of fangcheng port as wisco steel base, 2030 mm rolling abrasion successful commissioning of production line, marked the wisco fangchenggang project has entered the production stage; No.1 blast furnace of baosteel zhanjiang project also plans to begin production in September.

Thus, wisco fangcheng port, baosteel zhanjiang two tons donated for the iron and steel base, intended to become another important pieces off the coast of China’s iron and steel industry layout. By the end of May 2015, fangcheng port of wisco steel base project, the total investment of 10.033 billion yuan, baosteel zhanjiang iron & steel project total investment of 27 billion yuan.

In 2005, wisco group and liuzhou iron &steel group co.are presented.the group jointly filed fangcheng port ten million tons steel projects; In 2006, the joint steel group, injure group, baosteel group reporting zhanjiang harbour ten million tons high-quality goods steel base project. From the declaration of a decade ago, by 2012, and then to put into production in 2015, wuhan fangchenggang, baoshan iron and steel base in zhanjiang common after ten years of temper. This decade, China’s iron and steel industry ten years of rapid development and crude steel output from 350 million tons in 2005, to rise to 2014 tons in 823 million, ten years China’s steel output of 470 million tons, sustain average growth of 10%.

At present, China’s steel production capacity expansion, according to cisa statistics, China’s crude steel production capacity of 1.14 billion tons in 2014. Challenge is in front of two steel base, production is in China’s steel consumption stagnation, even fall back. Cisa statistics, in 2014 China’s apparent consumption of crude steel, fell 3.4% year-on-year to 738 million tons, is the first decline in 30 years. “The iron and steel industry” twelfth five-year “development plan”, China’s long-term crude steel consumption peak, may appear in 2015 and 2020, at present, China’s steel consumption increment space is extremely limited.

Wuhan iron and steel layout coastal areas of guangdong, has huge potential in the future

First of all, in the coastal development pattern of the global steel industry

From the global steel industry migration path from Europe and the United States to Japan and South Korea, and China, the international iron and steel enterprises have layout along the coast. There are statistics show that in 2008 the eu region along the coastal steel production capacity of 162 million tons, accounting for a total capacity of up to 60%; And South Korea, Japan iron and steel enterprise basic 100% project owner is a port. Why international iron and steel industry layout in the coastal areas, from the construction of wisco fangcheng port economy measure, wisco fangchenggang project, raw materials of iron ore by fangchenggang ashore, than from wisco based ashore to save freight cost per ton, 200 yuan of above.

Always hope with the help of a coastal steel projects in China, giving full play to the advantages of the coastal, resources, energy is given priority to with the global configuration, realize the innovation management mode, improve competitiveness, promote the development of steel industry structure adjustment and change of the pattern. Explicitly mentioned in the iron and steel industry revitalization planning, 2009 build caofeidian steel products base, by eliminating or reducing the existing production capacity, the construction of zhanjiang, fangcheng port, rizhao iron and steel products base and extension project of ningbo iron and steel.

At present our country coast, along the production amounted to 121.7 million tons of iron and steel enterprise, even if you count the baosteel, wisco fangcheng port, shandong rizhao port in zhanjiang (600017, shares) nine accumulative total 95 million tons of coastal projects, such as coastal the proportion is not more than a third of the project. Coastal steel base construction lag.

Second, to occupy the international market to lay a schedule

Development of coastal steel products base, in addition to the adjustment of industry layout, important meaning is to focus on the future, to adapt to changes in the coming decades China’s steel demand, and to prepare for the future steel exports.

China is already the world’s most important iron and steel producers, production occupy half of the world, steel exports grow, the proportion of total output rising steadily, steel exports in 2010 accounted for 7% and 8.4% in 2013, exports accounted for as high as 13.9% in 2014, 2014, net exports of eighty million tons of imported steel 14.43 million tons (2014), the magnitude and the United States, South Korea steel output already quite.

At present, the layout of the south China coastal areas, such as iron and steel base is layout in advance exports, with China’s steel consumption growth into the top arc zone, China’s steel exports will increase, the coastal steel base in the future will become the main force of China’s steel exports.

Wisco fangcheng port, baosteel zhanjiang the two projects, export advantage is close to the association of south-east Asian nations (asean) and India, South Asia and southeast Asia, is the most active areas in the future of the global economy, is important in steel consumption in the future. Into the first quarter of this year, South Asia and southeast Asia’s steel demand growth, statistics show that a quarter of 2015, south Asian countries of India, Pakistan, steel imports from China rose 207% and 124% respectively; Southeast Asian countries of Vietnam, Indonesia, the Philippines, Thailand, Malaysia, myanmar, year-on-year growth of 134%, 114% and 46.5%, respectively, 134%, 78.4% and 77.1%.